Anglo American Reports 2025 Results: Underlying EBITDA Rises to $6.4bn as Teck Merger Progresses

Anglo American's 2025 results: EBITDA climbs to $6.4bn, net debt falls, and Teck merger advances. A strategic pivot despite diamond headwinds.

20 February 2026by Joshua Thompson6 min read44 views

This article covers information on Anglo American PLC.

LON:AAL

Anglo American 2025 results: EBITDA up, net debt down, Teck merger on track

Anglo American has posted a steady set of 2025 numbers from its continuing operations, while pushing hard on portfolio reshaping and the headline-grabbing merger with Teck to create “Anglo Teck”. Underlying EBITDA rose 2% to $6.4 billion, cash generation was strong, and net debt fell by $2.1 billion to $8.6 billion. The fly in the ointment was diamonds: a sizeable De Beers impairment pushed the Group to a statutory loss.

Here’s what matters for investors – in plain English – and what to watch next.

Key numbers at a glance

Metric (continuing operations unless stated)	2025	2024
Revenue	$18,546 million	$17,745 million
Underlying EBITDA	$6,417 million	$6,322 million
EBITDA margin	33%	34%
Cash conversion	107%	98%
Net debt (including derivatives)	$8.6 billion	$10.6 billion
Group underlying earnings (total)	$610 million	$1,937 million
Statutory loss attributable to shareholders (total)	$(3,741) million	$(3,068) million
Total dividend per share	$0.23	$0.64

Copper and Premium Iron Ore did the heavy lifting

The quality of the core portfolio showed through. Copper delivered $3,983 million of underlying EBITDA at a 49% margin, and Premium Iron Ore delivered $2,873 million at a 43% margin. That combination – copper growth plus high-quality iron ore – is exactly what Anglo is building around.

Copper: Production fell 10% to 695 kt as Chile had a tougher year at Collahuasi (lower grades and recoveries). But pricing helped – the copper market price rose 9% and Anglo’s weighted average realised copper price rose 14%.
Quellaveco (Peru) shone: EBITDA up 32% to $2,325 million with very low unit costs at 89 c/lb. Chile was weaker as costs rose to 199 c/lb amid lower volumes and rehabilitation charges.
Premium Iron Ore: Flat production at 60.8 Mt and better realised prices drove EBITDA up 8%. Kumba benefited from improved rail performance and penalty income from Transnet; Minas-Rio absorbed a planned pipeline shutdown and still grew earnings.

On the cost side, Anglo hit its $1.8 billion run-rate savings target by year-end, and it showed up in cash flow: cash conversion of 107% and a $0.6 billion working capital release, helped by inventory management.

De Beers impairment drags to a Group loss

Diamonds remained the problem child. De Beers posted an underlying EBITDA loss of $511 million and Anglo recognised a pre-tax impairment of $2.3 billion ($1.8 billion after tax and non-controlling interests). Tough trading, lower rough prices and “stock rebalancing” – selling lower-demand assortments at lower prices – hurt. Production was sensibly reduced 12% to 21.7 Mct to align with demand, and unit costs fell 8% to $86/ct, but not enough to offset the price pressure.

Bottom line: despite decent operating delivery elsewhere, the Group recorded a statutory loss attributable to shareholders of $3.7 billion, principally because of the De Beers impairment.

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Balance sheet, cash and dividends

Deleveraging is moving the right way. Net debt dropped to $8.6 billion (from $10.6 billion), taking net debt to EBITDA down to 1.3x. Proceeds from selling the residual Valterra Platinum stake and the Jellinbah disposal supported the move, alongside lower capex at $3.3 billion.

Dividends followed policy: 40% payout of underlying earnings, equating to $0.23 per share for 2025 ($0.07 interim and proposed $0.16 final). That’s lower year-on-year – a function of lower Group underlying earnings as divested and held-for-sale assets rolled off and diamonds weakened.

Portfolio reset and Teck merger: why it matters

2025 was a pivot year. Anglo is simplifying fast – demerging PGMs (Valterra Platinum), progressing the sale of Steelmaking Coal, moving through approvals to sell Nickel, and pushing a dual-track separation of De Beers. In parallel, the Teck merger – to form Anglo Teck – is advancing through approvals after strong shareholder backing and Canadian sign-off under the Investment Canada Act.

Why this matters: the combined strategy tilts exposure to future-facing commodities, with more than 70% copper exposure for shareholders post-merger. For investors, that should mean cleaner earnings drivers, simpler valuation, and capital allocation focused on copper, premium iron ore and crop nutrients.

Operational trends: the honest read

Production mix: Copper volumes were down (Chile softness) but Peru offset on costs and throughput. Premium iron ore was resilient. Manganese bounced 30% post-cyclone disruptions in 2024. Diamonds were trimmed to match demand.
Prices: Copper tailwinds and premium iron ore premia helped. Iron ore benchmarks were lower, but quality premia and lower freight costs supported realised prices.
Costs and tax: Inflation and FX were modest headwinds. The underlying effective tax rate for continuing operations was high at 51.5% (39.1% excluding De Beers) – worth watching as the earnings mix shifts.

2026 guidance and growth projects to watch

Copper: 700-760 kt in 2026; weighted unit cost c.172 c/lb (Chile guidance c.230 c/lb; Peru c.100 c/lb). Chile is weighted to H2 as Collahuasi’s access to higher-grade ore improves; Los Bronces restarts its second plant temporarily to add c.25 kt in 2026.
Premium Iron Ore: 55-59 Mt in 2026 at c.$41/t weighted unit cost (Kumba c.$45/t; Minas-Rio c.$36/t). Kumba output dips in 2026 due to UHDMS tie-in but sales are protected by stock drawdown.
De Beers: 21-26 Mct production guidance with unit cost c.$80/ct; separation process under way.
Capex: c.$3.6 billion for continuing operations in 2026, including c.$3.1 billion for the simplified portfolio. Long-term sustaining capex guided at c.$2.0 billion per annum (simplified portfolio, 2026 real).

Growth options look capital-disciplined: debottlenecking at Collahuasi and Quellaveco; UHDMS at Kumba; Minas-Rio recleaner columns; and Woodsmith activity focused on de-risking and market development, with Mitsubishi stepping in to support studies and pilot sales as Anglo targets a future syndication.

ESG and safety: momentum continues, but vigilance needed

On safety, Anglo recorded its lowest-ever injury frequency rates in 2025, but tragically two fatalities – reminders that improvement must continue. Environmentally, Scope 1 and 2 emissions fell to 6.3 Mt CO2e (down 14% year-on-year) and fresh water withdrawals fell materially, with key water security projects progressing in Chile. These trends support licence-to-operate and cost resilience over time.

My take: the good, the bad, and the watchlist

Positives

Resilient core earnings with standout margins in Copper and Premium Iron Ore.
Deleveraging, strong cash conversion, and lower capex – sensible financial housekeeping.
Clear strategic path: Teck merger plus divestments should simplify and re-rate the story around copper-led growth.

Negatives

Diamonds are a material drag – impairment and operating losses underscore the urgency of separation.
Copper Chile underperformed on volumes and costs in 2025; execution on Collahuasi improvements is key.
Dividend lower year-on-year; underlying effective tax rate elevated due to earnings mix.

What to watch next

Regulatory milestones and timeline clarity for the Teck merger.
Sale progress and terms for Steelmaking Coal and Nickel; structure and value outcome for De Beers separation.
Copper delivery in H2 2026 as Collahuasi access improves; realised price premia and cost discipline holding up.
Net debt trajectory as further divestment proceeds land and capex remains disciplined.

Bottom line: this is a transition year that still delivered cash, cost savings and balance sheet progress. If Anglo executes on the portfolio reset and the Teck merger lands as planned, investors get a more copper-heavy, higher-quality miner with simpler moving parts. The near-term swing factor is diamonds – the quicker and cleaner that exit, the better for the valuation narrative.